Suppose the number of picture frames purchased increased by 5 percent when consumer income increased by 10 percent. Assuming other factors are held constant, picture frames would be classified as
a. inferior goods.
b. normal goods.
c. elastic goods.
d. inelastic goods.
B
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Which of the following is a coupon bond?
A) a U.S. savings bond B) a U.S. Treasury bill C) a U.S. Treasury note or bond D) a zero-coupon bond
The trade-creation effect refers to:
a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer. b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports. c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home. d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement. e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
Which of the following reasons why women earn less than men is considered by some to be economic, and by others to be sociological?
A. Women outnumber men. B. Women are the only ones who can give birth. C. The average man is physically stronger than the average women. D. Women are more likely to choose low-paying, "helping" professions.
Refer to the information provided in Figure 4.2 below to answer the question(s) that follow.
Figure 4.2Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true?
A. Price will still serve as a rationing device causing quantity supplied to rise from 8 to 11 soft pretzels. B. The market cannot move to a new equilibrium until there is also a change in supply. C. There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is higher than the original equilibrium quantity. D. Price will still serve as a rationing device causing quantity demanded to fall from 11 to 8 soft pretzels.